1010-0103 30-day notice

0103 30-day.pdf

30 CFR Parts 202, 206, and 207, Indian Oil and Gas Valuation

1010-0103 30-day notice

OMB: 1012-0002

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
comment period, and a public comment
meeting was held in Elko, Nevada on
September 10, 2008. The Final SEIS is
published in an abbreviated format, and
includes comments on the Draft SEIS
and BLM’s responses along with
resultant changes in the document.
The documents will be available at
http://www.blm.gov/nv/st/en/fo/
elko_field_office.html, Elko District
Office for at least 30-days, after which
BLM will issue a Record of Decision on
the proposed mine expansion.
(Authority: 43 CFR 3809)
Kenneth E. Miller,
District Manager, Elko.
[FR Doc. E9–6768 Filed 3–26–09; 8:45 am]
BILLING CODE 4310–HC–P

DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008–MRM–0029]

Agency Information Collection
Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service
(MMS), Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0103).

mstockstill on PROD1PC66 with NOTICES

SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are notifying the public that
we have submitted to the Office of
Management and Budget (OMB) an
information collection request (ICR) to
renew approval of the paperwork
requirements in the regulations under
30 CFR parts 202, 206, and 207. This
notice also provides the public a second
opportunity to comment on the
paperwork burden of these regulatory
requirements.
DATES: Submit written comments on or
before April 27, 2009.
ADDRESSES: Submit written comments
by either FAX (202) 395–7245 or e-mail
([email protected]) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1010–0103).
Please submit copies of your
comments to MMS by one of the
following methods:
• Electronically go to http://
www.regulations.gov. In the ‘‘Comment
or Submission’’ column, enter ‘‘MMS–
2008–MRM–0029’’ to view supporting
and related materials for this ICR. Click
on ‘‘Send a comment or submission’’

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link to submit public comments.
Information on using Regulations.gov,
including instructions for accessing
documents, submitting comments, and
viewing the docket after the close of the
comment period, is available through
the site’s ‘‘User Tips’’ link. All
comments submitted will be posted to
the docket.
• Mail comments to Hyla Hurst,
Regulatory Specialist, Minerals
Management Service, Minerals Revenue
Management, P.O. Box 25165, MS
302B2, Denver, Colorado 80225. Please
reference ICR 1010–0103 in your
comments.
• Hand-carry comments or use an
overnight courier service. Our courier
address is Building 85, Room A–614,
Denver Federal Center, West 6th Ave.
and Kipling St., Denver, Colorado
80225. Please reference ICR 1010–0103
in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla
Hurst, telephone (303) 231–3495, or
e-mail [email protected]. You may
also contact Hyla Hurst to obtain copies,
at no cost, of (1) the ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information.
SUPPLEMENTARY INFORMATION:

Title: 30 CFR parts 202, 206, and 207,
Indian Oil and Gas Valuation.
OMB Control Number: 1010–0103.
Bureau Form Number: Forms MMS–
4109, MMS–4110, MMS–4295, MMS–
4410, and MMS–4411.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). The Secretary
is required by various laws to manage
mineral resource production on Federal
and Indian lands and the OCS, collect
the royalties and other mineral revenues
due, and distribute the funds in
accordance with those laws. Applicable
laws pertaining to mineral leases on
Federal and Indian lands are posted on
our Web site at http://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. The MMS performs
the minerals revenue management
functions and assists the Secretary in
carrying out the Department’s trust
responsibility for Indian lands.
When a company or an individual
enters into a lease to explore, develop,
produce, and dispose of minerals from
Federal or Indian lands, that company
or individual agrees to pay the lessor a
share in an amount or value of

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production from the leased lands. The
lessee is required to report various kinds
of information to the lessor relative to
the disposition of the leased minerals.
Such information is generally available
within the records of the lessee or others
involved in developing, transporting,
processing, purchasing, or selling of
such minerals. We collect this
information to ensure that royalties are
accurately valued and appropriately
paid.
Information collections covered in
this ICR are found at 30 CFR part 202,
subparts C and J, which pertain to
royalties; part 206, subparts B and E,
which govern the valuation of oil and
gas produced from leases on Indian
lands; and part 207, which pertains to
recordkeeping. Indian tribes and
individual Indian mineral owners
receive all royalties generated from their
lands. Determining product valuation is
essential to ensure that Indian tribes and
individual Indian mineral owners
receive payment on the full value of the
minerals removed from their lands.
Failure to collect the data described in
this information collection could result
in the undervaluation of leased minerals
on Indian lands. All data reported is
subject to subsequent audit and
adjustment.
Indian Oil
Regulations at 30 CFR part 206,
subpart B, govern the valuation for
royalty purposes of all oil produced
from Indian oil and gas leases (tribal
and allotted), except leases on the Osage
Indian Reservation, and must be
consistent with mineral leasing laws,
other applicable laws, and lease terms.
Generally, the regulations provide that
lessees determine the value of oil based
upon the higher of (1) the gross
proceeds under an arm’s-length
contract; or (2) major portion analysis.
These oil valuation methods are
eligible for applicable transportation
allowances. From information collected
on Form MMS–4110, Oil Transportation
Allowance Report, (1) MMS verifies
transportation allowances to determine
if the lessee reported and paid the
proper royalty amount; and (2) MMS
and tribal personnel evaluate whether
the transportation allowances reported
and claimed by lessees are within
regulatory allowance limitations and are
calculated in accordance with
applicable regulations.
Indian Gas
Regulations at 30 CFR part 206,
subpart E, govern the valuation for
royalty purposes of natural gas
produced from Indian oil and gas leases
(tribal and allotted). The regulations

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices

apply to all gas production from Indian
oil and gas leases, except leases on the
Osage Indian Reservation.
Most Indian leases contain the
requirement to perform accounting for
comparison (dual accounting) for gas
produced from the lease. Lessees must
elect to perform actual dual accounting
as defined in 30 CFR 206.176 or
alternative dual accounting as defined
in 30 CFR 206.173. Lessees use Form
MMS–4410, Accounting for Comparison
[Dual Accounting], to certify that dual
accounting is not required on an Indian
lease or to make an election for actual
or alternative dual accounting for Indian
leases.
The regulations require lessees to
submit Form MMS–4411, Safety Net
Report, when gas production from an
Indian oil or gas lease is sold beyond the
first index pricing point. The safety net
calculation establishes the minimum
value, for royalty purposes, of natural
gas production from Indian oil and gas
leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids MMS compliance
efforts.
From information collected on Form
MMS–4295, Gas Transportation
Allowance Report, (1) MMS verifies
transportation allowances to determine
if the lessee reported and paid the
proper royalty amount; and (2) MMS
and tribal personnel evaluate whether
the transportation allowances reported
and claimed by lessees are within

Summary

regulatory allowance limitations and are
calculated in accordance with
applicable regulations.
From information collected on Form
MMS–4109, Gas Processing Allowance
Summary Report, (1) MMS verifies
processing allowances to determine if
the lessee reported and paid the proper
royalty amount; and (2) MMS and tribal
personnel evaluate whether the
processing allowances reported and
claimed by lessees are within regulatory
allowance limitations and are calculated
in accordance with applicable
regulations.

The MMS is requesting OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge his/her duties and
may also result in loss of royalty
payments to Indian tribes and
individual Indian mineral owners.
Proprietary information submitted to
MMS under this collection is protected,
and no items of a sensitive nature are
collected. The requirement to respond is
mandatory for Form MMS–4410,
Accounting for Comparison [Dual
Accounting], and for Form MMS–4411,
Safety Net Report, under certain
circumstances. For all other forms in
this collection, the requirement to
respond is required to obtain a benefit.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 302 potential Indian
lessees.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,074
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:

Indian Oil and Gas
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation, is
used for both Federal and Indian leases.
Most of the burden hours are incurred
on Federal leases; therefore, the form is
approved under ICR 1010–0136,
pertaining to Federal oil and gas leases.
However, we include a discussion of the
form in this ICR, as well as the burden
hours for Indian leases. To request
permission to exceed a regulatory
allowance limit, lessees must (1) submit
a letter to MMS explaining why a higher
allowance limit is necessary; and (2)
provide supporting documentation,
including a completed Form MMS–
4393. This form provides MMS with the
data necessary to make a decision
whether to approve or deny the request
and track deductions on royalty reports.

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Reporting and
recordkeeping requirement

30 CFR

Average number of annual
responses

Hour burden

Annual
burden
hours

202—ROYALTIES
Subpart C—Federal and Indian Oil
202.101 ...............................................

Standards for reporting and paying royalties .............
Oil volumes are to be reported in barrels of clean oil
of 42 standard U.S. gallons (231 cubic inches
each) at 60 °F. . . .

Burden covered under OMB Control Number
1010–0140 (expires 11/30/2009). Burden covered under § 210.52.

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Subpart J—Gas Production From Indian Leases
202.551(b) ..........................................

How do I determine the volume of production for
which I must pay royalty if my lease is not in an
approved Federal unit or communitization agreement (AFA)?.
(b) You and all other persons paying royalties on the
lease must report and pay royalties based on your
takes. . . .

202.551(c) ..........................................

(c) You and all other persons paying royalties on the
lease may ask MMS for permission . . . . to report entitlements . . ..

202.558(a) and (b) .............................

What standards do I use to report and pay royalties
on gas?.
(a) You must report gas volumes as follows: . . .

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Burden covered under OMB Control Number
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Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Average number of annual
responses

Hour burden

Annual
burden
hours

(b) You must report residue gas and gas plant product volumes as follows: . . .

mstockstill on PROD1PC66 with NOTICES

206—PRODUCT VALUATION
Subpart B—Indian Oil
206.56(b)(2) ........................................

Transportation allowances—general ..........................
(b)(2) Upon request of a lessee, MMS may approve
a transportation allowance deduction in excess of
the limitation prescribed by paragraph (b)(1) of this
section. . . . An application for exception (using
Form MMS–4393, Request to Exceed Regulatory
Allowance Limitation) must contain all relevant and
supporting documentation necessary for MMS to
make a determination. . . .

4

1

4

206.57(a)(1)(i) .....................................

Determination of transportation allowances ...............
(a) Arm’s-length transportation contracts (1)(i).
. .
The lessee shall have the burden of demonstrating that its contract is arm’s-length.

AUDIT PROCESS. See note.

206.57(a)(1)(i) .....................................

(a) Arm’s-length transportation contracts ...................
(1)(i) . . . Before any deduction may be taken, the
lessee must submit a completed page one of
Form MMS–4110 (and Schedule 1), Oil Transportation Allowance Report . . .

Burden covered under § 206.57(c)(1)(i) and (iii).

206.57(a)(1)(iii) ...................................

(a) Arm’s-length transportation contracts ...................
(1)(iii) . . . When MMS determines that the value of
the transportation may be unreasonable, MMS will
notify the lessee and give the lessee an opportunity to provide written information justifying the
lessee’s transportation costs.

AUDIT PROCESS. See note.

206.57(a)(2)(i) .....................................

(a) Arm’s-length transportation contracts ...................
(2)(i) . . . Except as provided in this paragraph, no
allowance may be taken for the costs of transporting lease production which is not royalty-bearing without MMS approval.

Burden covered under § 206.57(a)(3).

206.57(a)(2)(ii) ....................................

(a) Arm’s-length transportation contracts ...................
(2)(ii) Notwithstanding the requirements of paragraph
(i), the lessee may propose to MMS a cost allocation method on the basis of the values of the products transported. . . .

20

1

20

206.57(a)(3) ........................................

(a) Arm’s-length transportation contracts ...................
(3) If an arm’s-length transportation contract includes
both gaseous and liquid products, and the transportation costs attributable to each product cannot
be determined from the contract, the lessee shall
propose an allocation procedure to MMS. . . .
The lessee shall submit all available data to support its proposal. . . .

40

1

40

206.57(b)(1) ........................................

(b) Non-arm’s-length or no contract ...........................
(1) . . . A transportation allowance may be claimed
retroactively for a period of not more than 3
months prior to the first day of the month that
Form MMS–4110 is filed with MMS, unless MMS
approves a longer period upon a showing of good
cause by the lessee. . . .

Burden covered under § 206.57(c)(2)(i) and (iii).

206.57(b)(1) ........................................

(b) Non-arm’s-length or no contract ...........................

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

(1) . . . When necessary or appropriate, MMS may
direct a lessee to modify its actual transportation
allowance deduction.
206.57(b)(2)(iv) ...................................

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(b) Non-arm’s-length or no contract ...........................

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Average number of annual
responses

Hour burden

Annual
burden
hours

mstockstill on PROD1PC66 with NOTICES

(2)(iv) . . . After a lessee has elected to use either
method for a transportation system, the lessee
may not later elect to change to the other alternative without approval of MMS.
206.57(b)(2)(iv)(A) ..............................

(b) Non-arm’s-length or no contract ...........................
(2)(iv)(A) . . . After an election is made, the lessee
may not change methods without MMS approval.
. . .

20

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20

206.57(b)(3)(i) .....................................

(b) Non-arm’s-length or no contract ...........................
(3)(i) . . . Except as provided in this paragraph, the
lessee may not take an allowance for transporting
lease production which is not royalty bearing without MMS approval.

40

1

40

206.57(b)(3)(ii) ....................................

(b) Non-arm’s-length or no contract ...........................
(3)(ii) Notwithstanding the requirements of paragraph
(i), the lessee may propose to MMS a cost allocation method on the basis of the values of the products transported. . . .

20

1

20

206.57(b)(4) ........................................

(b) Non-arm’s-length or no contract ...........................
(4) Where both gaseous and liquid products are
transported through the same transportation system, the lessee shall propose a cost allocation
procedure to MMS. . . . The lessee shall submit
all available data to support its proposal. . . .

20

1

20

206.57(b)(5) ........................................

(b) Non-arm’s-length or no contract ...........................
(5) A lessee may apply to MMS for an exception
from the requirement that it compute actual costs
in accordance with paragraphs (b)(1) through
(b)(4) of this section. . . .

20

1

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206.57(c)(1)(i) .....................................

(c) Reporting requirements .........................................
(1) Arm’s-length contracts. (i) With the exception of
those transportation allowances specified in paragraphs (c)(1)(v) and (c)(1)(vi) of this section, the
lessee shall submit page one of the initial Form
MMS–4110 (and Schedule 1), Oil Transportation
Allowance Report, prior to, or at the same time as,
the transportation allowance determined, under an
arm’s-length contract, is reported on Form MMS–
2014, Report of Sales and Royalty Remittance. . . .

4

4

16

206.57(c)(1)(iii) ...................................

(c) Reporting requirements .........................................
(1) Arm’s-length contracts. (iii) After the initial reporting period and for succeeding reporting periods,
lessees must submit page one of Form MMS–
4110 (and Schedule 1) within 3 months after the
end of the calendar year, or after the applicable
contract or rate terminates or is modified or
amended, whichever is earlier, unless MMS approves a longer period (during which period the
lessee shall continue to use the allowance from
the previous reporting period).

4

4

16

206.57(c)(1)(iv) ...................................

(c) Reporting requirements .........................................
(1) Arm’s-length contracts. (iv) MMS may require
that a lessee submit arm’s-length transportation
contracts, production agreements, operating
agreements, and related documents. Documents
shall be submitted within a reasonable time, as
determined by MMS.

206.57(c)(2)(i) .....................................

(c) Reporting requirements .........................................
(2) Non-arm’s-length or no contract.

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AUDIT PROCESS. See note.

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Average number of annual
responses

Hour burden

Annual
burden
hours

(i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii)
and (c)(2)(viii) of this section, the lessee shall submit an initial Form MMS–4110 prior to, or at the
same time as, the transportation allowance determined under a non-arm’s-length contract or nocontract situation is reported on Form MMS–
2014. . . . The initial report may be based upon
estimated costs.
206.57(c)(2)(iii) ...................................

(c) Reporting requirements .........................................
(2) Non-arm’s-length or no contract.
(iii) For calendar-year reporting periods succeeding
the initial reporting period, the lessee shall submit
a completed Form MMS–4110 containing the actual costs for the previous reporting period. If oil
transportation is continuing, the lessee shall include on Form MMS–4110 its estimated costs for
the next calendar year. . . . MMS must receive
the Form MMS–4110 within 3 months after the
end of the previous reporting period, unless MMS
approves a longer period (during which period the
lessee shall continue to use the allowance from
the previous reporting period).

6

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18

206.57(c)(2)(iv) ...................................

(c) Reporting requirements .........................................
(2) Non-arm’s-length or no contract.
(iv) For new transportation facilities or arrangements,
the lessee’s initial Form MMS–4110 shall include
estimates of the allowable oil transportation costs
for the applicable period. . . .

Burden covered under § 206.57(c)(2)(i).

206.57(c)(2)(v) ....................................

(c) Reporting requirements .........................................
(2) Non-arm’s-length or no contract.
(v) . . . only those allowances that have been approved by MMS in writing . . .

Burden covered under § 206.57(c)(2)(i).

206.57(c)(2)(vi) ...................................

(c) Reporting requirements .........................................
(2) Non-arm’s-length or no contract.
(vi) Upon request by MMS, the lessee shall submit
all data used to prepare its Form MMS–4110. The
data shall be provided within a reasonable period
of time, as determined by MMS.

AUDIT PROCESS. See note.

206.57(c)(4) and (e)(2) .......................

(c) Reporting requirements .........................................

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

mstockstill on PROD1PC66 with NOTICES

(4) Transportation allowances must be reported as a
separate line item on Form MMS–2014, . . .
(e) Adjustments.
(2) For lessees transporting production from Indian
leases, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, . . .
206.59 .................................................

May I ask MMS for valuation guidance? ....................
You may ask MMS for guidance in determining
value. You may propose a value method to MMS.
Submit all available data related to your proposal
and any additional information MMS deems necessary. . . .

206.61(a) and (b) ...............................

What records must I keep and produce? ...................
(a) On request, you must make available sales, volume, and transportation data for production you
sold, purchased, or obtained from the field or
area. You must make this data available to MMS,
Indian representatives, or other authorized persons.
(b) You must retain all data relevant to the determination of royalty value. . . .

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Average number of annual
responses

Hour burden

Annual
burden
hours

mstockstill on PROD1PC66 with NOTICES

206—PRODUCT VALUATION
Subpart E—Indian Gas
206.172(b)(1)(ii) ..................................

How do I value gas produced from leases in an
index zone?.
(b) Valuing residue gas and gas before processing.
(1)(ii) Gas production that you certify on Form MMS–
4410, . . . is not processed before it flows into a
pipeline with an index but which may be processed later; . . .

4

25

100

206.172(e)(6)(i) and (iii) .....................

(e) Determining the minimum value for royalty purposes of gas sold beyond the first index pricing
point.
(6)(i) You must report the safety net price for each
index zone to MMS on Form MMS–4411, Safety
Net Report, no later than June 30 following each
calendar year; . . .
(iii) MMS may order you to amend your safety net
price within one year from the date your Form
MMS–4411 is due or is filed, whichever is
later. . . .

3

10

30

206.172(e)(6)(ii) ..................................

(e) Determining the minimum value for royalty purposes of gas sold beyond the first index pricing
point.
(6)(ii) You must pay and report on Form MMS–2014
additional royalties due no later than June 30 following each calendar year; . . .

206.172(f)(1)(ii), (f)(2), and (f)(3) ........

(f ) Excluding some or all tribal leases from valuation
under this section.
(1) An Indian tribe may ask MMS to exclude some
or all of its leases from valuation under this section. . . .
(ii) If an Indian tribe requests exclusion from an
index zone for less than all of its leases, MMS will
approve the request only if the excluded leases
may be segregated into one or more groups
based on separate fields within the reservation.
(2) An Indian tribe may ask MMS to terminate exclusion of its leases from valuation under this section. . . .
(3) The Indian tribe’s request to MMS under either
paragraph (f)(1) or (2) of this section must be in
the form of a tribal resolution. . . .

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206.173(a)(1) ......................................

How do I calculate the alternative methodology for
dual accounting?.
(a) Electing a dual accounting method.
(1) . . . You may elect to perform the dual accounting calculation according to either § 206.176(a)
(called actual dual accounting), or paragraph (b) of
this section (called the alternative methodology for
dual accounting).

2

19

38

206.173(a)(2) ......................................

(a) Electing a dual accounting method .......................
(2) You must make a separate election to use the alternative methodology for dual accounting for your
Indian leases in each MMS-designated area. . . .

Burden covered under § 206.173(a)(1).

206.174(a)(4)(ii) ..................................

How do I value gas production when an index-based
method cannot be used?.
(a) Situations in which an index-based method cannot be used.
(4)(ii) If the major portion value is higher, you must
submit an amended Form MMS–2014 to MMS by
the due date specified in the written notice from
MMS of the major portion value. . . .

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses

Annual
burden
hours

30 CFR

Reporting and
recordkeeping requirement

206.174(b)(1)(i) and (iii); (b)(2); (d)(2)

(b) Arm’s-length contracts ..........................................
(1)(i) You have the burden of demonstrating that
your contract is arm’s-length. . . .
(iii) . . . In these circumstances, MMS will notify you
and give you an opportunity to provide written information justifying your value. . . .
(2) MMS may require you to certify that your arm’slength contract provisions include all of the consideration the buyer pays, either directly or indirectly,
for the gas, residue gas, or gas plant product.
(d) Supporting data.
(2) You must make all such data available upon request to the authorized MMS or Indian representatives, to the Office of the Inspector General of the
Department, or other authorized persons. . . .

AUDIT PROCESS. See note.

206.174(d) ..........................................

(d) Supporting data If you determine the value of
production under paragraph (c) of this section, you
must retain all data relevant to determination of
royalty value.

Burden covered under OMB Control Number
1010–0140.

206.174(f) ...........................................

(f) Value guidance You may ask MMS for guidance
in determining value. You may propose a valuation method to MMS. Submit all available data
related to your proposal and any additional information MMS deems necessary. . . .?.

40

1

40

206.175(d)(4) ......................................

How do I determine quantities and qualities of production for computing royalties?.
(d)(4) You may request MMS approval of other
methods for determining the quantity of residue
gas and gas plant products allocable to each
lease. . . .

20

1

20

206.176(b) ..........................................

How do I perform accounting for comparison? ..........
(b) If you are required to account for comparison,
you may elect to use the alternative dual accounting methodology provided for in § 206.173 instead
of the provisions in paragraph (a) of this section.

Burden covered under § 206.173(a)(1).

206.176(c) ..........................................

(c) . . . If you do not perform dual accounting, you
must certify to MMS that gas flows into such a
pipeline before it is processed.

Burden covered under § 206.172(b)(1)(ii)

Hour burden

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Transportation Allowances
206.177(c)(2) and (c)(3) .....................

What general requirements regarding transportation
allowances apply to me?.
(c)(2) If you ask MMS, MMS may approve a transportation allowance deduction in excess of the limitation in paragraph (c)(1) of this section. . . .
(3) Your application for exception (using Form
MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to
make a determination.

206.178(a)(1)(i) ...................................

How do I determine a transportation allowance? .......
(a) Determining a transportation allowance under an
arm’s-length contract.
(1)(i) . . . You are required to submit to MMS a
copy of your arm’s-length transportation contract(s) and all subsequent amendments to the
contract(s) within 2 months of the date MMS receives your report which claims the allowance on
the Form MMS–2014.

206.178(a)(1)(iii) .................................

(a) Determining a transportation allowance under an
arm’s-length contract.

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Burden covered under § 206.56(b)(2).

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AUDIT PROCESS. See note.

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Hour burden

Average number of annual
responses

Annual
burden
hours

mstockstill on PROD1PC66 with NOTICES

(1)(iii) If MMS determines that the consideration paid
under an arm’s-length transportation contract does
not reflect the value of the transportation because
of misconduct by or between the contracting parties . . . In these circumstances, MMS will notify
you and give you an opportunity to provide written
information justifying your transportation costs.
206.178 ...............................................
(a)(2)(i) and (ii) ...................................

(a) Determining a transportation allowance under an
arm’s-length contract.
(2)(i) . . . you cannot take an allowance for the
costs of transporting lease production that is not
royalty bearing without MMS approval, or without
lessor approval on tribal leases.
(ii) As an alternative to paragraph (a)(2)(i) of this
section, you may propose to MMS a cost allocation method based on the values of the products
transported. . . .

20

1

20

206.178(a)(3)(i) and (ii) ......................

(a) Determining a transportation allowance under an
arm’s-length contract.
(3)(i) If your arm’s-length transportation contract includes both gaseous and liquid products and the
transportation costs attributable to each cannot be
determined from the contract, you must propose
an allocation procedure to MMS. . . .
(ii) You are required to submit all relevant data to
support your allocation proposal. . . .

40

1

40

206.178(b)(1)(ii) ..................................

(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(1)(ii) . . . You must submit the actual cost information to support the allowance to MMS on Form
MMS–4295, Gas Transportation Allowance Report, within 3 months after the end of the 12month period to which the allowance applies. . . .

15

3

45

206.178(b)(2)(iv) .................................

(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return
on undepreciated capital investment or a return on
depreciable capital investment. . . . you may not
later elect to change to the other alternative without MMS approval.

20

1

20

206.178(b)(2)(iv)(A) ............................

(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(2)(iv)(A) . . . Once you make an election, you may
not change methods without MMS approval. . . .

20

1

20

206.178(b)(3)(i) ...................................

(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(3)(i) . . . Except as provided in this paragraph, you
may not take an allowance for transporting a product that is not royalty bearing without MMS approval.

40

1

40

206.178(b)(3)(ii) ..................................

(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(3)(ii) As an alternative to the requirements of paragraph (b)(3)(i) of this section, you may propose to
MMS a cost allocation method based on the values of the products transported. . . .

20

1

20

206.178(b)(5) ......................................

(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.

40

1

40

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Average number of annual
responses

Hour burden

Annual
burden
hours

(5) If you transport both gaseous and liquid products
through the same transportation system, you must
propose a cost allocation procedure to MMS. . . .
You are required to submit all relevant data to
support your proposal. . . .
206.178(d)(1) ......................................

(d) Reporting your transportation allowance ..............
(1) If MMS requests, you must submit all data used
to determine your transportation allowance . . .

AUDIT PROCESS. See note.

206.178(d)(2), (e), and (f)(1) ..............

(d) Reporting your transportation allowance ..............

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

(2) You must report transportation allowances as a
separate entry on Form MMS–2014. . . .
(e) Adjusting incorrect allowances. If for any month
the transportation allowance you are entitled to is
less than the amount you took on Form MMS–
2014, you are required to report and pay additional royalties due, plus interest computed under
30 CFR 218.54 from the first day of the first month
you deducted the improper transportation allowance until the date you pay the royalties due. . . .
(f) Determining allowable costs for transportation allowances. . . .
(1) Firm demand charges paid to pipelines. . . .
You must modify the Form MMS–2014 by the
amount received or credited for the affected reporting period.

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Processing Allowances
206.180(a)(1)(i) ...................................

How do I determine an actual processing allowance?
(a) Determining a processing allowance if you have
an arm’s-length processing contract.
(1)(i) . . . You have the burden of demonstrating
that your contract is arm’s-length. You are required to submit to MMS a copy of your arm’slength contract(s) and all subsequent amendments
to the contract(s) within 2 months of the date
MMS receives your first report that deducts the allowance on the Form MMS–2014.

206.180(a)(1)(iii) .................................

(a) Determining a processing allowance if you have
an arm’s-length processing contract.
(1)(iii) If MMS determines that the consideration paid
under an arm’s-length processing contract does
not reflect the value of the processing because of
misconduct by or between the contracting parties .
. . In these circumstances, MMS will notify you
and give you an opportunity to provide written information justifying your processing costs.

206.180(a)(3) ......................................

(a) Determining a processing allowance if you have
an arm’s-length processing contract.
(3) If your arm’s-length processing contract includes
more than one gas plant product and the processing costs attributable to each product cannot
be determined from the contract, you must propose an allocation procedure to MMS. . . . You
are required to submit all relevant data to support
your proposal. . . .

40

1

40

206.180(b)(1)(ii) ..................................

(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.

20

5

100

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AUDIT PROCESS. See note.

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Hour burden

Average number of annual
responses

Annual
burden
hours

(1)(ii) . . . You must submit the actual cost information to support the allowance to MMS on Form
MMS–4109, Gas Processing Allowance Summary
Report, within 3 months after the end of the 12month period for which the allowance applies. . . .
206.180(b)(2)(iv) .................................

(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return
on undepreciable capital investment or a return on
depreciable capital investment. . . . you may not
later elect to change to the other alternative without MMS approval.

20

1

20

206.180(b)(2)(iv)(A) ............................

(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(2)(iv)(A) . . . Once you make an election, you may
not change methods without MMS approval. . . .

20

1

20

206.180(b)(3) ......................................

(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(3) Your processing allowance under this paragraph
(b) must be determined based upon a calendar
year or other period if you and MMS agree to an
alternative.

20

1

20

206.180(c)(1) ......................................

(c) Reporting your processing allowance ...................
(1) If MMS requests, you must submit all data used
to determine your processing allowance. . . .

AUDIT PROCESS. See note.

206.180(c)(2) and (d) .........................

(c) Reporting your processing allowance ...................
(2) You must report gas processing allowances as a
separate entry on the Form MMS–2014. . . .
(d) Adjusting incorrect processing allowances. If for
any month the gas processing allowance you are
entitled to is less than the amount you took on
Form MMS–2014, you are required to pay additional royalties, plus interest computed under 30
CFR 218.54 from the first day of the first month
you deducted a processing allowance until the
date you pay the royalties due. . . .

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

206.181(c) ..........................................

How do I establish processing costs for dual accounting purposes when I do not process the gas?.
(c) A proposed comparable processing fee submitted
to either the tribe and MMS (for tribal leases) or
MMS (for allotted leases) with your supporting
documentation submitted to MMS. If MMS does
not take action on your proposal within 120 days,
the proposal will be deemed to be denied and
subject to appeal to the MMS Director under 30
CFR part 290.

40

1

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207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions
207.4(b) ..............................................

Contracts made pursuant to old form leases .............
(b) The stipulation, the substance of which must be
included in the contract, or be made the subject
matter of a separate instrument properly identifying the leases affected thereby, is as follows
. . .

AUDIT PROCESS. See note.

207.5 ...................................................

Contract and sales agreement retention ....................

AUDIT PROCESS. See note.

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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and
recordkeeping requirement

30 CFR

Hour burden

Average number of annual
responses

Annual
burden
hours

Copies of all sales contracts, posted price bulletins,
etc., and copies of all agreements, other contracts,
or other documents which are relevant to the valuation of production are to be maintained by the
lessee and made available upon request during
normal working hours to authorized MMS, State or
Indian representatives, other MMS or BLM officials, auditors of the General Accounting Office, or
other persons authorized to receive such documents, or shall be submitted to MMS within a reasonable period of time, as determined by MMS.
Any oral sales arrangement negotiated by the lessee must be placed in written form and retained
by the lessee. Records shall be retained in accordance with 30 CFR part 212.
Total Burden ................................

.....................................................................................

........................

140

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Note: AUDIT PROCESS—The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of
1995 because MMS staff asks non-standard questions to resolve exceptions.

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonhour’’ cost burdens.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that an
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a currently valid OMB control
number.
Comments: Section 3506(c)(2)(A) of
the PRA requires each agency to ‘‘* * *
publish a 60-day notice in the Federal
Register * * * and otherwise consult
with members of the public and affected
agencies concerning each proposed
collection of information * * *.’’
Agencies must specifically solicit
comments to: (a) Evaluate whether the
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,
usefulness, and clarity of the
information to be collected; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on August
1, 2008 (73 FR 45055), announcing that
we would submit this ICR to OMB for
approval. (The Federal Register printed
an additional notice correcting the
response date for comments on August
8, 2008 (73 FR 46367).) The notice
provided the required 60-day comment

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17:13 Mar 26, 2009

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period. We received no comments in
response to the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. The
OMB has up to 60 days to approve or
disapprove the information collection
but may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by April 27, 2009.
Public Comment Policy: We will post
all comments in response to this notice
on our Web site at http://
www.mrm.mms.gov/Laws_R_D/InfoColl/
InfoColCom.htm. We also will post all
comments, including names and
addresses of respondents, at http://
www.regulations.gov. Before including
your address, phone number, e-mail
address, or other personal identifying
information in your comment, be
advised that your entire comment—
including your personal identifying
information—may be made publicly
available at any time. While you can ask
us in your comment to withhold from
public view your personal identifying
information, we cannot guarantee that
we will be able to do so.
MMS Information Collection
Clearance Officer: Arlene Bajusz, (202)
208–7744.
Dated: February 6, 2009.
Mary A. Williams,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. E9–6901 Filed 3–26–09; 8:45 am]
BILLING CODE 4310–MR–P

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DEPARTMENT OF THE INTERIOR
National Park Service
National Register of Historic Places;
Notification of Pending Nominations
and Related Actions
Nominations for the following
properties being considered for listing
or related actions in the National
Register were received by the National
Park Service before March 14, 2009.
Pursuant to section 60.13 of 36 CFR part
60 written comments concerning the
significance of these properties under
the National Register criteria for
evaluation may be forwarded by United
States Postal Service, to the National
Register of Historic Places, National
Park Service, 1849 C St., NW., 2280,
Washington, DC 20240; by all other
carriers, National Register of Historic
Places, National Park Service, 1201 Eye
St., NW., 8th floor, Washington, DC
20005; or by fax, 202–371–6447. Written
or faxed comments should be submitted
by April 13, 2009.
J. Paul Loether,
Chief, National Register of Historic Places/
National Historic Landmarks Program.
ARIZONA
Maricopa County
Burgess Lateral Historic District, Adjacent to
Arcadia Dr. between the Arizona Canal and
Lafayette Blvd., between 47th Pl. and 47th
St., Phoenix, 09000221
COLORADO
Montrose County
Denver & Rio Grande Western Railroad
Caboose No. 0577, Approximately 1 mi. N.
by NE. of US 50 at Cimarron, adjacent to

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File TitleDocument
SubjectExtracted Pages
AuthorU.S. Government Printing Office
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File Created2009-03-27

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